One of the first steps in purchasing a home is fully understanding your finances. For instance, avoid making changes to your financial story that could hurt your ability to qualify for your home loan. Here is a checklist to help you prepare.

Do

• Make and stick to a budget
• Pay all your monthly bills on time
• Locate and organize income, W-2 and tax information, and additionally gather your bank and investment statements
• Check with your loan officer regarding anything related to your current financial picture
• Get pre-qualified before beginning your home search, it’s never too early to speak with us

Don’t

• Change jobs, become self-employed or quit your job
• Change banks
• Use credit cards excessively or let accounts fall behind
• Omit debts or liabilities from your loan application. It can muddy the process as a result
• Buy furniture or appliances
• Buy a car, boat or anything else with a motor
• Co-sign for any loans for anyone. In addition, do not apply for new credit or allow credit inquiries
• Make large deposits or withdrawals without checking with your loan officer
• Spend money you need to set aside for closing

Any changes to your current financials could affect your overall current financial picture. Above all, we are always here to provide guidance and advice as you begin your homebuying process.